J.P. Morgan Strategist Says True Diversification From AI Is Hard to Find
Gabriela Santos, J.P. Morgan Asset Management's chief market strategist for the Americas, said true diversification from the artificial intelligence (AI) trade is now hard to find.
Speaking on CNBC's "Closing Bell Overtime," Santos said the AI capital expenditure buildout has grown so large that its effects now touch nearly every asset class, from equities to fixed income and private markets.
A Summer of Hard Lessons
Santos said the summer's momentum unwind hit AI-linked stocks hardest in July and continued into August. The episode underscored a key lesson for AI-bullish investors.
"You can be really really bullish AI and still need to think really really carefully about portfolio construction."
Gabriela Santos, CNBC
She said that means paying closer attention to position sizing, leverage, and diversification. That holds even for investors who remain convinced AI will keep driving an extended earnings cycle.
Santos added that the AI buildout keeps shifting shape, making old sector groupings less reliable. Hyperscalers, chipmakers, and software companies increasingly diverge within their own groups, rather than moving as one block.
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